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posted by mrpg on Friday May 03 2019, @03:00AM   Printer-friendly
from the but-is-it-real-theft? dept.

The U.S. Department of Justice announced Tuesday that it has hit two individuals with bank fraud charges in connection to a system for depositing funds to cryptocurrency exchanges.

In a statement, U.S. Attorney's Office for the Southern District of New York alleged that Reginald Fowler of Arizona and Ravid Yosef, said to live in Tel Aviv, Israel, were part of a scheme that involved using bank accounts to move money into a series of unnamed cryptocurrency exchanges.

Court documents released by the Justice Department purport that the alleged money services business operated between February and October 2018. During that period, prosecutors say, the two "opened and used numerous bank accounts at financial institutions that were insured by the [FDIC]," including one based in Manhattan.

Two Charged With Running 'Shadow Banking' Service for Crypto Exchanges

AAF's initial lead investor is charged with bank fraud


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  • (Score: 2) by c0lo on Friday May 03 2019, @04:14AM (1 child)

    by c0lo (156) Subscriber Badge on Friday May 03 2019, @04:14AM (#838296) Journal

    Doing it for 3rd parties? (I don't know actually, but that would be my feeling of guts)

    --
    https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
    Starting Score:    1  point
    Karma-Bonus Modifier   +1  

    Total Score:   2  
  • (Score: 1, Informative) by Anonymous Coward on Friday May 03 2019, @04:20AM

    by Anonymous Coward on Friday May 03 2019, @04:20AM (#838304)

    From TFA:

    That firm was previously identified in October as having done business with crypto exchange Bitfinex, which is being investigated along with stablecoin issuer Tether by the New York Attorney General’s Office in a development that last week spilled into public view. Past reporting suggests that the corporate entity said to be involved is tied to Crypto Capital, a payment processing firm that has provided services to crypto exchange Bitfinex and others.

    “Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges,” U.S. Attorney Geoffrey Berman said in a statement. “Their organization allegedly skirted the anti-money laundering safeguards required of licensed institutions that ensure the U.S. financial system is not used for criminal purposes, and did so through lies and deceit.”
    [...]
    While the court documents themselves don’t directly state it, supplementary reporting suggests that Global Trading Solutions LLC is tied to licensed financial institution Global Trade Solutions AG. Global Trade Solutions is the parent company of Crypto Capital, a payment processor named in in the NY AG’s investigation of Bitfinex and Tether, the company behind the USDT stablecoin. The firm is cited as parent company on Crypto Capital’s website.

    In addition to doing business with Bitfinex, Crypto Capital’s website names among its customers the now-defunct QuadrigaCX and Coinapult, among others. According to the Wayback Machine, past customers include exchanges Kraken, BTCC and Bitt.